I have noticed from time to time that the outside temp display will rotate between the actual temperature and ICE. Didn't see anything about this in the owners manual. Weird thing is that I have seen it say ICE when its 38 degrees outside. Can anyone explain?

that's what it's programmed to do. BMW gives a tone and flashes the temp at 37 .

It does that because overpasses may ice over at these temps. It's a good thing, as Martha would say. ;)